Introduction
Sweden’s Parliament, Riksdag, passed a new Act on Financial Crime Penalties, effective from July 1, 2014. This legislation focuses on money laundering offenses and complements the existing measures against money laundering and terrorist financing in the country.
Criminal Law Provisions for Money Laundering (Section 1)
The new Act includes the following:
Key Definitions
- Offense: Any act that is a crime under Swedish or foreign law.
Criminal Responsibility
A person is guilty of money laundering if they:
- Hide, transfer, acquire, convert, or store money or other property derived from an offense.
- Intend to conceal the origin or promote the appropriation of the money or property.
- Help others launder money or commit a seemingly lawful explanation for its possession.
Penalties
- Up to 2 years in prison for a misdemeanor.
- At least 6 months and up to 6 years in prison for a gross offense.
Aggravating Circumstances
- Extensive or systemic criminal activities.
- Substantial financial gains.
- Serious harm to individuals or the public.
- Targeting vulnerable groups.
Commercial Money Laundering Penalties
Equal to those for money laundering, but the maximum prison sentence for an individual is up to 2 years.
Confiscation
The Act allows for the confiscation of:
- Money, other property, or their value connected to money laundering or a related offense.
- Instrumentalities used or intended to be used in a money laundering offense.
Confiscation Recipients
Confiscation can be made from:
- Offenders.
- Accomplices.
- Those who profited from the offense.
- Those who acquired the property knowing it was connected to the crime.
Exceptions
In some cases, property acquired after the offense through inheritance, gift, or will can also be confiscated.
Seizure of Property
Swedish authorities can seize money, claims, or other right-like assets reasonably believed to be involved in a money laundering offense. Seizure can only be enforced if the benefits outweigh the intrusion on the suspect or any other opposing interest.
Seizure Order
The investigation leader or prosecutor orders the seizure of property.
Conclusion
This new legislation strengthens Sweden’s commitment to combating money laundering and related financial crimes both within and beyond its borders.